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 ATLANTA, Oct. 13 /PRNewswire/ -- BellSouth Corporation (NYSE: BLS) and Prime Management Company today announced an agreement in principle to form an innovative partnership to jointly pursue interactive television and related multimedia opportunities.
 The partnership provides BellSouth and Prime Management the opportunity to offer a broad array of new communications services, including interactive television, pay-per-view, traditional cable television and alternative telecommunications for business and residential customers.
 Under the agreement, BellSouth will acquire 22.5 percent of Prime Management, a privately held Austin, Texas company that manages cable television systems serving more than 500,000 customers in various U.S. markets, including Houston, Chicago and Las Vegas, Nev. In addition, BellSouth has agreed to participate jointly with Prime Management in a $450 million recapitalization of Community Cable Television of Las Vegas, in which BellSouth will provide up to $250 million of debt financing.
 As part of the recapitalization, BellSouth will acquire various options to purchase all or part of Community Cable and Prime Management, subject to appropriate regulatory approvals. The nation's 14th largest cable system, Community Cable serves the entire Las Vegas metropolitan area and is one of the fastest growing operations in the country.
 "This is an unique opportunity for BellSouth to expand its relationships and position in a complementary line of business," said John L. Clendenin, chairman and chief executive officer of BellSouth. "This transaction will allow us to work with an accomplished cable operator and a proven management team to pursue interactive entertainment and communications opportunities in our region and outside our traditional service area," said Clendenin.
 Signaling efforts to aggressively expand into the multimedia business, in July BellSouth named William F. Reddersen to the new post of senior vice president-broadband strategies. "This is another significant step in preparing BellSouth to capitalize on the merging opportunities in interactive television, consumer entertainment and the convergence of the communications and cable industries," said Reddersen.
 "BellSouth is a well-managed company with a technologically sophisticated network in the fastest growing-region of the country," said Gregory S. Marchbanks, president of Prime. "They were looking for video and related service opportunities and expertise; we were looking for telecommunications talent and the chance to leverage our skills in new markets. It's an excellent match."
 Among the nation's 25 largest cable companies, Prime Management operates a portfolio of entertainment programming, packaging and delivery services, including interactive televisions, traditional cable TV, pay-per-view and alternative telecommunications transport. Since its founding in 1979, Prime Management has earned a reputation for successfully improving operations of acquired properties and converting them into top cable industry performers.
 Community Cable, with over 203,000 cable connections, owns Hospitality Network, which provides in-room programming and innovative interactive television services in hotels. The fourth-largest pay-per-view company serving the hospitality industry, Hospitality Network serves more than 70,000 hotel rooms nationwide. Community Cable also has deployed a fiber-optic network to support major hotels and other businesses in the Las Vegas area as an alternative provider of telecommunications services.
 The agreement is subject to the execution of definitive agreements.
 BellSouth is an international communications services company. Its subsidiaries offer local telephone service in nine Southeastern states and wireless communications services worldwide, including cellular, nationwide paging and mobile data, provide advertising and publishing services and market and maintain stand-alone and fully integrated communications systems.
 Founded in 1979, by its chairman, Robert W. Hughes, Prime Management in a management services company that operates various U.S. cable systems through a series of limited partnerships. Together, Prime Management's team has operated cable systems representing more than one million subscribers.
 -0- 10/13/93
 /CONTACT: Tim Klein of BellSouth, 404-249-4135/

CO: BellSouth Corporation; Prime Management Company ST: Georgia, Texas IN: TLS SU:

RA-BR -- AT002 -- 1452 10/13/93 07:39 EDT
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Publication:PR Newswire
Date:Oct 13, 1993

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